Lincoln Financial Offers QLAC Status on Deferred Income Annuity

Providing Advisors Additional Tool To Address Client Longevity Income Needs

New offering allows for deferred distribution of qualified retirement funds and income flexibility

May 18, 2015 — RADNOR, Pa.–(BUSINESS WIRE)–Lincoln Financial Group (NYSE: LNC) announced today it enhanced its Lincoln Deferred Income SolutionsSM Annuity with Qualifying Longevity Annuity Contract (QLAC) status for IRA rollovers, providing producers with another tool to help address longevity income needs.

The Lincoln Deferred Income SolutionsSM Annuity enhances a client’s ability to plan for future income needs by allowing them to select when they begin receiving income payments following a specified deferral period.

The exact amount of those payments is determined at the outset, and does not change over the life of the contract, providing income predictability, flexibility and transparency. With QLAC status, qualified funds from an IRA used to purchase this annuity will be exempt from standard Required Minimum Distribution (RMD) rules. “Lincoln is committed to providing a diverse portfolio of retirement income solutions that can aid advisors in helping their clients protect wealth and make the most effective goal-based decisions,” said Brian Kroll, senior vice president, Annuity Solutions.

Added autonomy

“The new QLAC status on our deferred income annuity enables clients to use their qualified retirement savings to establish a guaranteed future lifetime income stream, but with the autonomy to choose a distribution timeframe that suits their needs by extending the benefits of IRA tax deferral to as late as age 85.” When opening a QLAC with a Lincoln Deferred Income SolutionsSM Annuity, clients can invest the lesser of $125,000 or 25% of their total IRA assets in Lincoln’s QLAC and defer receiving income payments to a future date.

The dollar amount invested into a QLAC is excluded from the RMD calculation that determines the amount an individual must begin withdrawing from a qualified retirement account at 70½ , potentially at a time when a client does not have an income need. The QLAC can defer the impact of RMD-related income taxes and guarantee a future income. Today, an individual reaching 65 years old has an average life expectancy of almost an additional 20 years1, increasing the importance of establishing a guaranteed future income strategy for the opportunities and uncertainties associated with longevity.

With QLAC status on the Lincoln Deferred Income SolutionsSM Annuity, payments may be deferred until age 85. Beneficiaries will receive the full return-of-premium death benefit if the policyholder passes away before receiving any QLAC distributions or, if the QLAC distributions have started, they receive a return of premium death benefit reduced by all previous payments. QLAC status for IRAs is immediately available on the Lincoln Deferred Income SolutionsSM Annuity.

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Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives and/or insurance agents do not provide tax, accounting or legal advice. Please consult an independent advisor as to any tax, accounting or legal statements made herein. Lincoln Deferred Income Solutions SM Annuity (contract forms 13-618S, 13-618F, and state variations) is issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. Contractual obligations are subject to the claims-paying ability of The Lincoln National Life Insurance Company. Income taxes are due upon withdrawal and if withdrawn before age 59½, an additional 10% federal tax may apply.

There is no additional tax benefit for contracts purchased in an IRA or other tax-qualified plan, since these are already afforded tax-deferred status.
Product and features are subject to state availability. Limitations and exclusions may apply. Not available in New York.

1. Administration on Aging, Administration for Community Living, U.S. Department of Health and Human Services, “A Profile of Older Americans: 2012”

About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help empower Americans to take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $222 billion in assets under management as of March 31, 2015. Learn more Find us on Facebook, Twitter (@lincolnfingroup), LinkedIn and YouTube. To sign up for email alerts, please visit our Newsroom at